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Energy efficiency always pays off, no matter who’s in the White House.

Energy Efficiency: A Wise Investment That Always Pays Off

Nov. 1, 2024
No matter who wins the 2024 presidential election, one thing won’t change—the value of energy efficiency in offering a path to cost savings and sustainability.

Even amidst the ever-shifting landscape of federal policies and a contentious presidential election, one investment remains consistently sound: energy efficiency. Engineers have long recognized the value of matching resources to needs, a principle that translates seamlessly into the business realm. For building owners, facility managers, and anyone responsible for a building portfolio, energy efficiency offers a tangible path to financial savings and environmental sustainability.

Realizing Long-Term Savings

Energy-efficient systems minimize energy consumption when running equipment or appliances, directly reducing utility bills and operational costs. Although initial investment may be higher, the cumulative savings over time yield a substantial return on investment (ROI). By reducing energy usage, businesses can lower operational expenses, enhance cash flow, and improve bottom-line profitability. 

Local Incentives and Regulations Matter

While political winds may sway, local incentives and regulations for energy efficiency remain steadfast. Utility, tax, and state incentives offer tangible rewards for energy-saving measures, encouraging businesses to adopt greener practices without relying on taxpayer funding. Cities like New York have taken a proactive approach, implementing Building Performance Standards that impose penalties for non-compliance. These regulations, such as Local Law 97, incentivize businesses to reduce their carbon footprint by specific deadlines.

Boosting Property Value and Asset Appeal

Investing in energy efficiency also boosts property and asset value. Energy-efficient buildings and equipment command higher market value due to reduced operating cost, improved sustainability, and enhanced attractiveness to tenants and buyers, leading to long-term financial gains. 

Balancing Sustainability and Regulatory Compliance

Furthermore, energy efficiency reduces carbon footprints, aligns with global sustainability goals, and meets tightening emissions regulations. Businesses that prioritize energy efficiency gain reputational benefits, tax incentives, or financial advantages, making it a wise investment that consistently pays off.

Leveraging Data for Informed Decision-Making

Data, when harnessed effectively, becomes a powerful tool in the pursuit of energy efficiency. Many facilities collect data but fail to leverage it for informed decision-making. By establishing systems to analyze and interpret recorded data, building owners can pinpoint areas for improvement and implement targeted solutions. The old adage of “what gets measured gets managed” very much applies to building energy efficiency and decarbonization.

Tailored Solutions

The path to energy efficiency is not one-size-fits-all. Each building, with its unique characteristics and operational profile, requires a tailored approach. Over-installing or oversizing clean energy systems can be counterproductive, as every technology carries a carbon footprint—even when you’re installing a clean alternative like solar panels. It’s essential to consider carbon as a currency, evaluating the cost of each solution against the carbon savings it delivers.

Understanding the nuances of a building or portfolio—its historical energy consumption patterns and areas of low-hanging fruit—is crucial for maximizing return on investment. By identifying and implementing the most effective energy efficiency measures, businesses can reap both financial and environmental benefits.

The uncertainty surrounding federal policies should not deter businesses from prioritizing energy efficiency today. It’s a wise investment that offers tangible financial rewards, environmental benefits, and a commitment to sustainability. By exploring local incentives, leveraging data insights, and implementing tailored solutions, building owners and facility managers can save money while creating a more efficient, resilient, and sustainable future.

About the Author

Kent Peterson

Kent Peterson is VP and COO of P2S, a Legence company.

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